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Capital account election

Last updated 24 March 2021

Has the trustee made an election into managed investment trust capital account treatment?

Trustees of eligible AMITs may make an irrevocable election to apply the CGT provisions for the taxation of gains and losses on disposal of eligible assets. A trust will be eligible for capital treatment if it meets the definition of a MIT at the relevant time.

The trustee of an AMIT may make the election. The election must be made:

  • in the first year the trust is a MIT
  • in an approved form.

For more information see Capital treatment elections.

Answer Yes or No as appropriate.

How to make an election

The trustee of an AMIT makes an election by answering Yes to the following question on the AMIT tax return: Has the trustee made an election into managed investment trust capital account treatment?

The election must be made on or before the day the AMIT is required to lodge its tax return for the income year in which it became a managed investment trust, or if the Commissioner allows a later day, that later date.

If you are the trustee of a MIT that came into existence in an earlier income year (and are therefore no longer eligible to make the election), you must still answer the question asked in the AMIT tax return to confirm whether you have previously made an election for capital treatment.

When does the election take effect?

For trusts that became a MIT before the 2009–10 income year, the election will have effect from the 2008–09 and later income years.

For trusts that became a MIT in the 2009–10 income year or a later year of income, the election will have effect for the income year in which the trust became a MIT and later income years.

See also:

QC49555